Retail Payment Systems
In the OIC Member Countries
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parties. Small banks generally view payment services as an essential part of a bundled
good that is necessary to retain customers.
2. Mobile network operators (MNOs). A mobile network operator is a provider of wireless
communications services that owns, controls, or has regular access to all the elements
necessary to sell and deliver services to an end user including radio spectrum allocation,
wireless network infrastructure, back haul infrastructure, billing, customer care,
provisioning computer systems and marketing and repair organisations. In addition to
obtaining revenue by offering retail services under its own brand, an MNO may also sell
access to network services at wholesale rates to mobile virtual network operators. In this
category, we can also include mobile operators, mobile device manufacturers, applications
providers, terminal providers and third party agents (Khiaonarong 2014).
3. Non-bank innovators. Non-bank innovators can be described as relatively small firms that
create and market new payment or payment-related products. PayPal, an example of a
nonbank innovator, successfully developed a peer-to-peer electronic payment vehicle.
Non-bank innovators have played a key role in developing online account aggregation.
Account aggregation allows consumers to view their financial assets online in one place.
While account aggregation is not a payment product, it is often bundled with payment
products such as demand deposit accounts.
4. Non-bank data processors. Today, large data processors are playing an increasing role in
processing payment-related information for financial institutions and other payment
system participants. Some of the larger data processors purchase innovations that have
been introduced in the marketplace or partner with financial institutions to bring products
to market. These entities take advantage of their economies of scale and scope. They may
provide services such as cheque clearing, ACH processing, and credit and debit card
processing services. To date they operate in leading financial centres, but they are likely to
begin operating in some OIC countries soon.
5. Joint ventures and consortia. Joint ventures may include members within the same
industry or across industries. Innovations made by joint ventures generally have different
characteristics than those developed by individual entities. Successful innovations by
established joint ventures generally leverage existing financial infrastructure and brand
recognition. Probably the most recognisable joint ventures are MasterCard and Visa. While
these card associations initially focused on credit cards, they have now expanded to other
payment products. In addition, clearing houses such as the Clearing House for Interbank
Payments (CHIPS) and the Electronic Payment Network (EPN), and industry trade groups